India reevaluates Turkish business ties amid geopolitical tensions and Kashmir dispute | cliQ Latest

India is currently reviewing its extensive business partnerships with Turkish companies operating across various sectors, from metro rail projects to tunnels and manufacturing units. With bilateral trade hitting over $10 billion in FY24 and Turkish investments spanning infrastructure, aviation, and education, the Modi government’s decision to scrutinize these ties marks a significant shift in the relationship between the two nations. This move comes amid rising geopolitical tensions, particularly after Turkey’s critical stance on Kashmir and its growing closeness with Pakistan.

Broad Turkish Presence in India

Turkish firms have been active in India for more than a decade, operating in states like Gujarat, Maharashtra, Uttar Pradesh, Jammu & Kashmir, and Delhi. Their involvement includes critical infrastructure projects such as metro rails in Lucknow, Pune, and Mumbai, where Turkish construction companies play a major role. For instance, a Turkish company partnered with Indian firms to establish a manufacturing unit in Gujarat, while another Turkish aviation firm operates in major Indian airports — including Delhi’s Indira Gandhi International Airport, Mumbai’s Chhatrapati Shivaji Maharaj International Airport, and Bengaluru’s Kempegowda International Airport. These investments have contributed to a cumulative Foreign Direct Investment (FDI) of approximately $240 million from 2000 to 2024.

Turkish cooperation has also extended beyond business into areas such as telecommunications, culture, and education, with numerous MoUs signed over the years. Notably, in 2020, a Turkish firm was responsible for the electromechanical components of the Atal Tunnel in Jammu & Kashmir, and in 2024, Rail Vikas Nigam Limited (RVNL) signed an MoU with another Turkish company for metro rail projects.

Shift Driven by Geopolitical Realities

Despite these longstanding ties, a subtle but deliberate policy shift is underway. According to a senior government official, all ongoing and completed projects involving Turkish companies are currently under careful review. The government is collecting detailed data to understand the full scope of these engagements across both public and private sectors.

This reevaluation reflects broader geopolitical concerns. Turkey’s repeated criticisms of India’s Kashmir policy at international platforms and its increasing alignment with Pakistan have raised alarms in New Delhi. While India had earlier maintained a cautious and low-profile approach, the recent Operation Sindoor — India’s response to a terror attack in Jammu & Kashmir — has accelerated the reassessment. Experts note that while some long-term agreements may remain unaffected, Turkey’s stance on Kashmir could hinder future trade and investment growth.

The Modi government’s current approach is discreet, with no formal cancellations announced yet, but it signals a willingness to distance itself economically from partnerships that do not align with India’s strategic interests, despite their commercial value.

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